Reportable Segments

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Reportable Segments

NOTE 12 – Reportable Segments

In March 2022, the Company reorganized into two segments – Test and Measurement (T&M) and Radio, Baseband and Software (RBS). The T&M segment is comprised of the Boonton, Noisecom and Holzworth brands. T&M is primarily engaged in supplying noise source components and instruments and electronic testing and measurement instruments to customers in the semiconductor, military, aerospace, medical and commercial communications industries.

The RBS segment is comprised of CommAgility and develops the software which enables specialized LTE and 5G deployments, applications and private network solutions including the LTE physical layer and stack software, for mobile network and related applications. RBS engineers work closely with customers to provide hardware and software solutions in specialized applications and use-cases in wireless baseband, private networks, and non-terrestrial (“NTN”) communications. Additionally, CommAgility licenses, implements and customizes 5G and LTE physical layer and stack software for private networks supporting satellite communications, the military and aerospace industries, offering our customers unique implementation capabilities built on 3rd Generation Partnership Project (“3GPP”) standards.

For internal reporting purposes, the Company’s chief operating decision maker makes financial decisions and allocates resources based on segment profit information obtained from the Company’s internal management systems. Segment profitability includes the direct expenses of each segment and certain corporate allocations for rent and insurance. Management does not include in its measures of segment profitability of certain corporate expenses such as information technology expenses, finance and accounting expenses, legal and professional fees, public company expenses and other discreet items that are not core to the measurement of segment management’s performance but rather are controlled at the corporate level.

Summarized financial information relating to the Company’s reportable segments is shown in the following table:

	Three months ended								Three months ended								Nine months ended								Nine months ended
	September 30, 2022								September 30, 2021								September 30, 2022								September 30, 2021
	T&M		RBS			Total			T&M		RBS			Total			T&M		RBS			Total			T&M		RBS			Total
Net revenues	$	4,080	$	1,250		$	5,330		$	5,931	$	1,445		$	7,376		$	15,628	$	3,366		$	18,994		$	16,779	$	6,569		$	23,348
Cost of revenues		1,948		724			2,672			2,564		770			3,334			6,817		1,749			8,566			7,089		2,985			10,074
Gross profit		2,132		526			2,658			3,367		675			4,042			8,811		1,617			10,428			9,690		3,584			13,274
Operating expenses		1,787		1,418			3,205			1,858		1,684			3,542			5,645		4,456			10,101			5,338		5,307			10,645
Segment profitability		345		(892	)		(547	)		1,509		(1,009	)		500			3,166		(2,839	)		327			4,352		(1,723	)		2,629
Corporate expenses							2,034								2,610								6,040								5,884
Operating loss							(2,581	)							(2,110	)							(5,713	)							(3,255	)
Other income/(expense)							(46	)							20								(705	)							2,074
Interest expense							18								(365	)							(159	)							(947	)
Income/(loss) before taxes							(2,609	)							(2,455	)							(6,577	)							(2,128	)
Tax provision/(benefit)							(341	)							(1,255	)							(1,540	)							(1,390	)
Net income/(loss) from continuing operations							(2,268	)							(1,200	)							(5,037	)							(738	)
Net income from discontinued operations, net of tax							87								1,013								11,695								1,854
Net income/(loss)						$	(2,181	)						$	(187	)						$	6,658							$	1,116
Depreciation and Amortization	$	260	$	70		$	330		$	225	$	249		$	474		$	794	$	287		$	1,081		$	676	$	742		$	1,418